Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Business Segment Information

Schedule of operating results by business segment

The following tables summarize, for the periods indicated, operating results by business segment (in thousands):

					Corporate
			Pharmacy		and
	Healthcare		Management		Elimination		Consolidated
Three Months Ended September 30, 2019
Managed care and other revenue	$	521,379	$	69,968	$	(118)	$	591,229
PBM revenue		—		572,086		(4,772)		567,314
Cost of care		(397,697)		—		—		(397,697)
Cost of goods sold		—		(528,500)		4,527		(523,973)
Direct service costs and other		(99,416)		(79,842)		(16,586)		(195,844)
Stock compensation expense (1)		1,995		1,669		940		4,604
Segment Profit (Loss)	$	26,261	$	35,381	$	(16,009)	$	45,633

					Corporate
			Pharmacy		and
	Healthcare		Management		Elimination		Consolidated
Three Months Ended September 30, 2020
Managed care and other revenue	$	489,451	$	79,382	$	(145)	$	568,688
PBM revenue		—		606,546		(5,117)		601,429
Cost of care		(364,438)		—		—		(364,438)
Cost of goods sold		—		(565,121)		4,852		(560,269)
Direct service costs and other		(104,610)		(91,012)		(21,148)		(216,770)
Stock compensation expense (1)		833		1,615		2,994		5,442
Segment Profit (Loss)	$	21,236	$	31,410	$	(18,564)	$	34,082

					Corporate
			Pharmacy		and
	Healthcare		Management		Elimination		Consolidated
Nine Months Ended September 30, 2019
Managed care and other revenue	$	1,574,314	$	192,511	$	(434)	$	1,766,391
PBM revenue		—		1,678,661		(13,214)		1,665,447
Cost of care		(1,175,705)		—		—		(1,175,705)
Cost of goods sold		—		(1,563,910)		12,542		(1,551,368)
Direct service costs and other		(297,840)		(238,253)		(57,958)		(594,051)
Stock compensation expense (1)		5,775		5,465		7,971		19,211
Segment Profit (Loss)	$	106,544	$	74,474	$	(51,093)	$	129,925

					Corporate
			Pharmacy		and
	Healthcare		Management		Elimination		Consolidated
Nine Months Ended September 30, 2020
Managed care and other revenue	$	1,459,378	$	211,684	$	(495)	$	1,670,567
PBM revenue		—		1,736,519		(14,515)		1,722,004
Cost of care		(1,035,377)		—		—		(1,035,377)
Cost of goods sold		—		(1,635,380)		13,803		(1,621,577)
Direct service costs and other		(310,996)		(252,960)		(56,811)		(620,767)
Stock compensation expense (1)		4,696		5,661		7,474		17,831
Segment Profit (Loss)	$	117,701	$	65,524	$	(50,544)	$	132,681

(1) Stock compensation expense, changes in the fair value of contingent consideration recorded in relation to acquisitions and impairment of intangible assets are included in direct service costs and other operating expenses; however, these amounts are excluded from the computation of Segment Profit.

Schedule of reconciliation of Segment Profit to income before income taxes

The following table reconciles income from continuing operations before income taxes to Segment Profit from continuing operations (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2020		2019		2020
Income (loss) from continuing operations before income taxes	$	4,903	$	(19,626)	$	6,453	$	(4,154)
Stock compensation expense		4,604		5,442		19,211		17,831
Depreciation and amortization		28,890		24,730		82,498		71,976
Interest expense		8,935		7,286		27,042		24,239
Interest and other income		(1,699)		(349)		(5,279)		(2,119)
Special charges		—		16,599		—		24,908
Segment Profit from continuing operations	$	45,633	$	34,082	$	129,925	$	132,681